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IT market in Qatar to grow at a CAGR of 10 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increase in government initiatives. The IT market in Qatar has also been witnessing increasing demand from SMEs. However, the high rate of software piracy could pose a challenge to the growth of this market.
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There are more than 23,800 private companies in Qatar, among which more than 70 percent of enterprises are SMEs and rest are large enterprises. Since large numbers of private companies are SMEs, any increase in IT uptake will lead to an increased investment in the IT market in Qatar. However as of now, SMEs do not have the maturity and capacity to adopt IT for competitive advantage and they have mostly deployed basic IT solutions. But these companies have started to invest into tablets, customized software applications, and maintenance and support services. Also, SMEs are becoming aware of the fact that IT solutions help them gain a competitive edge over their competitors, and IT provides business automation which leads to improvement in overall business productivity. Furthermore presence of smaller vendors offering solutions at lower cost will help SMEs increase their IT uptake.
According to the report, the IT market in Qatar has many drivers, one of which is the increase in government support to improve the IT infrastructure in the country. The government has begun a number of initiatives that have a positive impact on the IT market in Qatar. For instance, the government has increased its spending on implementing e-governance and liberalizing telecom policies.
Further, the report states that one of the major challenges is that the Software segment has confronted extensive piracy and vendors in this segment have suffered huge losses. However, the government is implementing solutions to curb software piracy in the country, which has led to a reduction in software piracy by almost 10 percent in the last few years.
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